NEW YORK — Macy's is seeing signs that a merry holiday shopping season could be in store.
The department store chain on Wednesday reported a quarterly profit that handily beat Wall Street expectations, with the company citing rejiggered advertising and promotions for helping reverse a slip in sales in the previous quarter.
In a conference call with analysts, chief financial officer Karen Hoguet noted that traditional gift categories such as fine jewelry, cashmere and housewares were trending well. She also noted positive trends for cold weather items such as coats, boots and sweaters.
"If we have anything close to a normal weather pattern this year, this could add significant volume," she said.
The holiday shopping season is a make-or-break time for retailers because it can account for as much as 40 percent of annual revenue. This year, there are also six fewer days between Thanksgiving and Christmas, intensifying the pressure for companies to perform. Already, Macy's has said it plans to open on Thanksgiving evening for the first time.
"We expect a heightened sense of urgency among customers, so it's important that we be ready for her every day, every time, in every way she shops," Hoguet said.
Retailers are also facing ongoing concerns about shoppers' willingness to spend in the weak economy. Macy's, for example, has been stepped up promotions, which led to a slide in gross profit margins in the quarter. Increased shipping costs for online orders also contributed to the decline.
Macy's Inc., based in Cincinnati, Ohio, is the first of the major retailers to report third-quarter results and is often seen as a barometer of spending among middle- to upper-income shoppers.
